What is the mortgage payment protection insurance (MPPI) UK?


If you live in the United Kingdom, the mortgage payment protection insurance (MPPI) is the UK mortgage disability insurance.

What is covered by the UK mortgage payment protection insurance (MPPI)?

The mortgage payment protection insurance will pay your mortgage if you suffer sickness, disability or an accident and you cannot repay the loan for a long period of time.

A non-mortgage PPI policy may also cover credit card and other loans payments. Some people take a policy for 1 to 5 years and then decide whether or not to renew it. Some take MPPI or non-mortgage PPI for a slightly shorter period than the actual loan term on the assumption that if anything happens during the short time they are not insured, they could make the remaining payments on their own.

The deferral period after which you begin to receive your payments may vary from 30 to 120 days, depending on the particular mortgage payment protection insurance policy (MPPI).

For the UK, the incentive for obtaining an MPPI is the diminishing state help for your mortgage if you suffer disability. State help has been reduced and less people qualify for it. Therefore, many borrowers would like to get payment protection insurance for their mortgage or other debt.

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